All Forum Posts by: Manesh Hardeo

Ah padmapper....I was trying to think of that site the other day. Thanks David.

It's always a good idea to work into your agreement a time frame with monetary bonus or damage. For example, 100% of the work has to be completed by XYZ date, or if not yet completed then they lose $100/day on their final payment. Or if they finish by XYZ date they'll get some monetary bonus you feel fit.

Money is always the biggest motivator. It's always a good idea to stress the importance of the relationship moving forward to begin with -- if they see more business in the future you'd think they'd be motivated enough with just that.

Everyone knows how the investor-contractor relationship goes though. If you find a good one -- hold on tight and treat them right.

Good luck,

It's really dependent on the lender. I recently wrote Wells Fargo (one of the banks that require 90 days) a letter acknowledging my intent to flip within 90 days and that the property is going to be rehabbed. I'm not sure if it'll workout, but worth a shot.

Hey Danny....Shawn. I'd be there if i was still in Houston! Enjoy!

If you do want to help your investor get bids I would make sure you help them get at least 3 bids. Personally, I like to look at a house at least twice prior to finalizing my #s. Now, any reasonable investor knows there's no guarantee -- like everyone else has stated that's just not possible.

If something does go wrong -- I would make sure you don't just disappear. You help assist them in any way possible to remedy whatever problem they're having and perhaps give the investor a discount on the next deal.

If you didn't knowingly do something negligent, the investor is reasonable, and you do whatever you can to assist them ...then I think you should be fine.

But, again...this is real estate. If everything went perfectly, then it just wouldn't be real estate. :)

Yeah like John said...the equitable rights of that agreement now become that of the buyers. Your $3k would show up on the HUD as POC and the remaining $12k would show up as the actual assignment fee.

Brandon,

I've seen all sorts of contracts being used by wholesalers....anything from a 1 page simple contract to something more similar to the state's real estate commission promulgated contract . A contract is simple a written agreement between both parties, so in reality you don't have to have anything too sophisticated. I've closed some deals with wholesalers on 1 page contracts just the same as longer ones.

As long as you have sufficient verbiage to allow for due diligence or option periods as well as the seller allowing proper access to the property for buyer final approval I think you should be fine.

The only real issue that you may want to look into for your jurisdiction are your options if a seller breaks the contractual agreement with you and decides not to sell.

I've had it happen a few times over the years, but as I've really come to find out -- if they don't want to sell, then it's usually not worth the headache, time, or money to fight it.

In addition, make sure to have an assignment page that will cover you that will have options for you to accept a non-refundable down payment and having a clause for reimbursing you as an assignor for any costs you may incur while placing the property under contract..i.e earnest money or option/due diligence fees.

So, if you contract a property with a seller you'll have them sign your contract, an investor buyer sign the assignment page, and place a non-refundable down payment with you to secure the deal.

It would be a good idea to create a relationship with a title company or closing attorney that has investor experience to hear what advice they have for you. The reason for this is different underwriting guidelines may have varying degrees of requirements depending on where you're located and they will tell you what's expected for an assignment specifically.

I know this is short and sweet, but I'm sure many others will have more good suggestions and advice for you.

Good luck,

You can give the closing attorneys we use here in town. They do a lot of this. Halperin Lyman -- Craig Halperin or Jonathan Lyman. 678-999-9220

Good luck,
Manesh

I'm also located in Atlanta. You can try both the GAREIA and AtlantaREIA. Both are great starting spots for Atlanta investors. Peter Pasternack also has a great event once a month call ATL Connections. Look them up -- we usually have booths at all of them.

Kiran,

I have a lender we use here that lends 65% on ARV and is cheaper than most. Reliable and gives me straight forward answers. I'm located in Midtown Atlanta -- give me a shout and I can probably help you out.

Great responses and awesome to see what you guys think.

Happy Thanksgiving all,
Manesh